74P

On September 15, 2008, the fund terminated its outstanding
derivatives contracts with Lehman Brothers Special
Financing, Inc. (LBSF) in connection with the bankruptcy
filing of LBSFs parent company, Lehman Brothers
Holdings, Inc. On September 26, 2008, the fund entered into
a receivable purchase agreement (Agreement) with
another registered investment company (the Seller) managed
by Putnam Management. Under the Agreement,
the Seller sold to the fund the right to receive, in the
aggregate, $655,823 in net payments from LBSF in connection
with certain terminated derivatives transactions (the
Receivable), in exchange for an initial payment plus
(or minus) additional amounts based on the funds ultimate
realized gain (or loss) with respect to the Receivable.
The Receivable will be off set against the funds net payable
to LBSF and is included in the Statement of assets
and liabilities in Payable for investments purchased. Future
payments under the Agreement are valued at fair
value following procedures approved by the Trustees and are
included in the Statement of assets and liabilities. All
remaining payments under the Agreement will be recorded as
realized gain or loss. The funds net payable to LBSF
was calculated in accordance with the funds master contract
with LBSF. The fund has accrued interest on the net
payable, which is included in the Statement of operations in
Interest expense. Putnam Management currently is in
discussions with LBSF regarding resolution of amounts
payable to LBSF. Amounts recorded are estimates and final
payments may differ from these estimates by a material
amount.